8:17 am, May 14, 2025
Vertu Motors saw profits fall despite a rise in revenue in 2024, in what was the ‘lowest new retail car market for 25 years’.
The listed dealer group finished 2024 with revenue of £4.8bn – a modest rise of 1.7% on the year before – with dealer acquisitions adding £123.9m to the pot, while disposals and closures amounted to a £40.6m reduction.
Adjusted profit before tax came to £29.3m, a 15.8% fall on the year prior, thanks to underlying operating profitability declining due to the impact of the ZEV Mandate, together with losses arising from acquisitions and new dealership start-ups, Vertu said.
Total like-for-like new vehicle sales came to 97,602, a 1.7% fall on the year before, which consisted in part of 34,170 new retail cars (-3.9%), 2,819 agency new retail cars (+78.5%), and 19,040 Motability cars (+0.1%).
Vertu called the 2024 new car market the lowest for 25 years, and said that its own 3.9% volume decline in new retail cars was ‘significantly better’ than the retail market decline in registrations of 7.4%.
Like-for-like used vehicle sales, meanwhile, came to 85,769 – a 0.7% fall, and aftersales like-for-like revenue was up 5.8% and gross profit rose by £12.3m.
Last year saw Vertu axe the historic brand names of Bristol Street Motors and Macklin Motors, and all dealerships within the group adopted the Vertu name by April 2025.
Explaining the move in the company’s 2024 results, CEO Robert Forrester said: ‘The consolidation aligns the Group’s retail presence under one brand, better suited to the future UK automotive landscape.
‘It enables significant marketing efficiencies, enhances brand visibility nationwide, and improves return on investment.’
He added: ‘These changes are expected to drive stronger market awareness at a lower cost, with annualised marketing savings of £5.0m projected in the medium term.’
During the year, Vertu purchased family-owned Burrows Motor Group for £12.5m – adding five Toyota dealerships, two Mazda sites and a Kia showroom to its operations – a Honda dealership in Exeter from Hendy Group for £1m, and an LEVC authorised repair in Edinburgh called The Union Motor Company Limited.
Vertu also opened its first two BYD dealerships, a second Smart dealership, a flagship Ducati outlet in Sunderland, redeveloped two sites acquired as part of the Rowes Garage Limited acquisition back in October 2023, and a handful of other sites.
Vertu walked away from showrooms in Dorchester and Barnstable, and, as a consequence of the JLR’s ‘Reimagine’ strategy, ceased Jaguar sales in Bolton and Exeter, leaving only Leeds as Vertu’s sole Jaguar showroom.
Chairman in Andy Goss said: ‘The Group once again showed its adaptability and high levels of operational excellence during the year ended 28 February 2025, in the face of unprecedented market conditions in the new car market.
‘Adjusted profit before tax of £29.3m was in line with the reduced market expectations following the group’s trading update in February. This set out how the UK new car market for retail sales in 2024 was the lowest for 25 years and the government’s ZEV mandate, to force the adoption of battery electric vehicles, had seriously impacted Manufacturer and retailer volumes and profits in the new car channel.
‘Additionally, consumer and business confidence in the UK was impacted by the government’s Autumn Budget and consequent proposed tax rises.
‘The Group reacted to these effects by outselling the market trends in battery electric vehicles (BEV) and delivering a cost reduction programme to aid future profitability and cashflow generation.
‘The business focused on what it could control.’
Giving an update on current trading and an outlook statement, CEO Robert Forrester said trading profit in March and April 2025 was ‘ahead of prior year levels’.
The Vertu board recommended a final dividend of 1.15p per share subject to AGM approval on June 25.
